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Islam and economic development
Islam and economic development
Islamic constraints to development
In Islam, women are inferior to men, Quran (4:34). No alternative quotations or excuses can prove otherwise. Recent figures from the International Labor Organization, published by the World Bank, indicate that in the Middle East and North Africa, women comprise 28% of the total labor force whereas the world average is 40%. As a group, these countries have the lowest female labor force participation rate in the world. One of the lowest figures is Saudi Arabia with 16%. As distance from the Arabian Peninsula increases, so does the proportion of women in the labor force. In Pakistan the figure is 28.6 percent,
The nature of Islamic education may not be helpful in developing open minded citizens fully equipped to fulfill their ambitions and potential. The time devoted to daily religious observances and annual festivals such as Ramadan may detract from time available for economically productive activities to a greater extent compared with other religions. The religion contributes to an attitude of fatalism and complacency. Even in countries with oil wealth, there has been a conspicuous failure to effectively use revenues for the purpose of industrial development.
The constraints and costs imposed on financial institutions by the nominal prohibition on interest payments may preclude a free market in financial capital, causing inefficiency, moral hazard in banking, and limiting the funds available for investment. The prohibition on interests serves no beneficial purpose. Apart from it being banned by the Quran, there is no reason in modern times for the charging of interest to be considered immoral. In ancient times unscrupulous tax collectors may have forced people to pay exorbitant and unreasonable interest on unpaid taxes. Today, there is no compulsion, but rather competition between lenders to offer attractive rates. Those that borrow money receive a service and those that lend it provide one. Elaborate schemes to circumvent such transactions because of their supposed immorality or due to their prohibition in Islam serve no purpose except to increase costs and increase inefficiency.
Islamic tax regimes may negatively effect resource allocation, productivity and innovation. Conflict between secular and sharia law may contribute to an ineffective rule of law, a lack of trust in judicial institutions, moral hazard in judiciary, limitation on property rights and contract law, all of which have negative economic consequences. Religious constraints on the freedom of speech and on the power of the legislature, may impinge on democratic rights, institutions, political freedom and the ability to expose and eradicate corruption, again with negative economic impacts.
Where religion contributes to the order of society and a feeling of well being amongst citizens, its benefits may seem considerable. When it contributes to ignorance, inefficiency and poverty it becomes a cost to society and a liability.
I say when you add religion and goverment togather you have a real mess.